For-profit organisations are meant for maximisation of profit – as it suggests when we say ‘for-profit’ – which goes back to the owner where as non-profit organisations (NPOs) are quite different – they are not, primarily, for profit. It suggests that there should be a basic difference which makes them stand apart.
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There are so many arguments by academic researchers and professionals, which are going to be discussed later in this document, in relation to both of these sectors and their boundaries by keeping in view the overlapping developments over the last two decades or so. While the for-profit organisations have been witnessed participating in voluntary activities and showing altruism, NPOs have also been observed using business management strategies and financial management frameworks for a quite long time. However, academics and professionals argue that though non-profits are involved in financial management and monetary associated models and frameworks but ultimately, unlike for-profits; it is not the end but a means to end.
End lies somewhere else which is either not yet decided – for many or rather all of the non-profit organisations – or cannot be decided in the first place (Helmut, 2000; 9).
For-profit organisations have their end products to put in display and attract customers. Their (for-profits) messages to convey about and advertise for are of utility, value, service, benefit, advantage and convenience to those who spend money. Conversely, NPOs are not supposed to do that or rather they are unable to do that. This is because they do not offer any of the above mentioned returns to actual money-spenders or donors which for-profit organisations do. They do not actually give anything tangible at all in return to whom they are collecting money from. Then what do the donors get in return of their money?
Here comes the main point of distinction the non-profit organisations have got a mission which can define many of these organisations objectives, or rather all of them, as remote and ethereal – i.e. empathy, compassion, sympathy, service for public good, kindness and welfare. They collect money from someone else and spend it onto someone else in need who cannot afford that much money for themselves. In this process of welfare and public good a donor gets a feeling of satisfaction, love for humanity, altruism and compassion.
Although no strict legal definition of charity exists even today and it is still in progress which makes it fairly new a sector (Helmut, 2000; 6), there seems to have a popular approach that charitable purposes can be categorised in one of four ways; the poverty alleviation; education uplift; the spread of religion; and other useful objectives for the community (Quint 1994; 1 see Hanvey and Philpot,
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